Monopoly
Your pharmaceutical company has developed a gene therapy that addresses a rare life threatening condition. The inverse demand function for this therapy is given as: P=$2,000,000 – 10,000Qd is the annual quantity demanded. While development costs were substantial, your marginal costs are just $20,000 per treatment (one treatment needed).
1 If you set a single price to maximize profits, what quantity will you supply each year? ( the marginal revenue function as the same y axis intercept as the inverse dement function but twice the slope. Set MR = MC and solve for Q)
2What is the price for treatment? (plug your quantity from 1 into the inverse demand function.)
3 If the treatment was priced at the marginal cost to your company, how many treatments would be provided per year?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more